City to Cut $1.5 Billion Via Layoffs, Tax Cut Rollback, Fines, Etc.

November 6, 2008

The Mayor today announced his Financial Plan update, some details of which were leaked yesterday. As reported, he is taking back the $400 property tax rebate instituted in 2004, as well as the 7 percent property tax reduction initiated in 2007 and renewed for this fiscal year in May. Also as previewed, 3,000 city jobs are indeed going away in layoffs and attrition; along with the pre-announced Parks, Police, Child Protective Services and Fire Department cutbacks, the Mayor’s Office will lose 52 jobs. City workers will use fewer cars and drive them shorter distances, and libraries and cultural institutions will lose $11 million; library hours will be cut back.

The Mayor also plans to certain fees and fines $123 milliov via “certain fees and fines,” so don’t litter, spit on the sidewalk, or put your feet up on subway seats.

Through these means the Mayor says we “will substantially reduce the budget deficit, but will not eliminate the budget gap for FY 2010.” The New York Times reports that at his press conference the Mayor suggested that he might make more cuts in January, and that he was considering a 15 percent jump in the city’s personal income tax.